Bermuda-based reinsurance company, Max Capital Group Ltd., will join forces with Harbor Point Ltd., A privately held property-casualty reinsurer to form Alterra Capital Holdings Ltd. Reinsurance is insurance for insurers that want to reduce the possibility of exposure from underwritten policies. The new company will trade under the symbol ALTE.
Both Max Capital Group and Harbor Point Ltd. are backed by private-equity investors and hedge funds that include Stone Pointe Capital LLC, JP Morgan Partners and Moore Capital Management LLC. They will divide governance over the freshly formed company’s board of directors.
Rather than dividing equally, shareholders of Harbor Point will possess roughly 52 percent of Alterra while Max Capital shareholders will own the remaining 48 percent. Prior to the deals announcement Harbor Point, which spun off of Chubb Corp. in 2005, was valued at $163 billion. Max Capital, which was founded in 1999, had a market capitalization of $1.3 billion.
Max Capital’s chairman and chief executive officer W. Marston Becker, will hold the position of president and CEO at Alterra. Harbor Point CEO and President John R. Berger will be CEO of Reinsurance of Alterra.
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